Lucas Oil Products turned a lot of heads last week with the announcement that it has purchased rights to name the future home of the National Football Leagues Indianapolis Colts. The companys founder plans to use that kind of attention as a springboard to become a major player in the U.S. motor oil market.
Lucas and the Colts announced March 1 that the fuel and oil additive supplier agreed to pay $122 million over 20 years to attach its identity to the $500 million stadium, which is under construction and scheduled to open in two years. Located in downtown Indianapolis, Lucas Oil Stadium will have a retractable roof and seat 63,000 people for the powerhouse Colts home games. Officials said it will also host college basketball games, concerts and other special events.
Lucas President and Chief Executive Officer Forrest Lucas allowed that his company has a smaller profile than many of the companies that have named stadiums around the NFL. Television maker RCA has the RCA Dome, the Colts home since 1984. Ford Motor named the Detroit Lions Ford Field. Stadiums in Pittsburgh and Boston carry the names of ketchup king Heinz and razor marketer Gillette. Lucas said the association with the Colts can help his company gain a level of recognition closer to some of the aforementioned.
Just look at how much people have written about us in the past week, he told Lube Report yesterday. Its all about selling oil and having a certain status level. People like dealing with successful companies, and this just brings a new level of recognition.
Lucas Oil is built around the sale of aftermarket additives for fuels and motor oils for passenger cars and heavy duty trucks. The company claims that its products, which are sold under the Lucas brand name, are the top-selling additives for both fuels and lubricants in the U.S. truck-stop market.
Based in Corona, Calif., Lucas also sells passenger car motor oils, primarily in Europe and recently in Asia. Though just a small portion of its business now, Forrest Lucas said the company is preparing to greatly expand its motor oil business in the United States.
Weve grown at an average rate of about 40 percent per year [since its founding in 1989], Lucas said. Now were ready to move into motor oils, and we think we can be successful and continue that kind of growth there. He added that Lucas strategy will be to offer a higher quality oil at reasonable prices.
Lucas Oil is no stranger to sports promotions, having sponsored racing teams, venues and series in a variety of motor sports. Lucas said the company plans to continue those activities, which cover sports such as hot rod, truck and boat racing.
Weve done this kind of thing for years through different stages in motor sports, Lucas said. Its been very beneficial for our company, but not everyone is into motor sports, so this will help us reach a brand new audience.
The agreement between Lucas and the Colts is one of the five most expensive stadium naming deals in the NFL, according to the Indianapolis Star. The newspaper reported that deals around the league pay between $620,000 and $10 million per year.
Forrest Lucas said he wanted to be associated with the Colts partly because he and his wife are originally from Indiana. Since the deal was announced, Indiana Gov. Mitch Daniels has invited the company to relocate its headquarters to Indianapolis. Lucas said he will consider doing so but is not ready to decide at this time.